Increase in insurance claims from gap year students

According to a recent report there has been a marked increase in the number of insurance claims being made by gap year students. One insurance firm has reported that the number of claims that are being made by gap year students on their travel insurance policies has leapt by more than half compared to a year earlier.

EssentialTravel.co.uk. which provides travel insurance, said that from December of last year and May of this year the number of claims on its backpacker insurance policy had increased by over 61 percent compared to the same period a year earlier. Just over 52 percent of claims were down to medical expenses, and over 18 percent were for personal effects according to the insurance firm’s figures.

More than half of the claims that were made originated in Asia and Australia, and officials said that this was due to the fact that regulations in these destinations regarding dangerous sports was more relaxed than in many other destinations. The higher claims for personal effects were put down to backpackers often travelling with costly items such as cameras, laptops, and similar high value gadgets.

The group also pointed out that the value of the claims being made by gap year travellers had increased over the past year, rocketing from £77 per claim to £584 per claim, which reflected an increase of 658 percent.

Stuart Bensusan, of EssentialTravel.co.uk, said: “It is unnerving, particularly for parents, to hear that claims from backpackers encountering mishaps abroad are on the rise, but it goes to show how important it is for them to take out adequate insurance before they leave. Preparing for a gap year abroad is arguably the most exciting time in a young person’s life and nobody wants to think about the potential pitfalls.”

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“Imperative” for travellers to get the right insurance

It is “imperative” for travellers to ensure they have the correct insurance cover for their trip say experts.

STA travel said that every level of travel insurance is different offering various degrees of inclusion and levels of cover.

A spokesperson for the company said there is also a ‘no-one-size-fits all’ approach to purchasing travel insurance.

With adventure holidays and long-haul trips there are increased levels of risk which must be taken into account when selecting insurance cover.

“It may not be the most exciting, but travel insurance is probably the most important purchase you’ll make for your trip,” she said.

It will help you enjoy your trip, offering you protection “against the unexpected” she added.

According to figures from the Mintel Gap Year report, predictions are that the global gap year market will be worth £11 billion by 2010.

The research showed that the market demographic is split into those travelling before, during and after university, as well as those taking a ‘career gap’ and the post-retirement travellers.

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Increasing numbers of students preferring to save over travel

Increasing numbers of students are foregoing a gap year to go travelling, preferring to put money away for property, according to new statistics.

Findings from Abbey revealed that 42 per cent of respondents are opting to save towards a deposit on a first home.

This is twice the number of students saving up to go travelling or for a new car after they have graduated.

Nici Audhlam-Gardiner, head of Abbey Mortgages said: “House prices have brought in a harsh new reality for students.”

“They now need to weigh up the benefits of travelling against jumping straight into a career and being able to afford to get onto the property ladder,” he added.

A further 21 per cent of past graduates thought they could definitely have saved more money while at university, while 2.9 million (17 per cent) wished that they had worked harder and played less, according to the figures.

Recent research from Abbey showed that up to 15 million Brits suffered financially as a result of being unprepared for big life changes.

Tags: gap year, property ladder, life changes, Nici, Nici Audhlam Gardiner, result, Gap